Contract status indicates the current stage of the contractual agreement's lifecycle, from drafting to negotiation to execution and beyond. Monitoring them allows stakeholders to assess the progress and identify problems in time. Businesses can stay aligned to commitments, deadlines, and milestones, running operations smoothly.

These predefined statuses can vary depending on the contract type, jurisdiction, and industry. However, proactively capturing them enables parties to ensure a smooth transition of legal agreements from one phase to another. As a result, everyone is clear on whether a contract is active, expired, pending, or terminated, allowing them to make informed decisions.